Today's Stock Market Swoon

[michael at ecst.csuchico.edu]

Max, the tax argument is a logical possibility.  Say that I sold by
Cisco or Qualcomm earlier this year to buy a new hot IPO.  I incurred
capital gains, but may not have money on hand to pay my taxes.  I have no
idea how important this phenomenon might be.

 > 
> . . .  Monday is tax day. A lot of winners at the Wall Street casino owe a 
> bundle on their capital gains, and are probably cashing some chips to pay 
> their taxes. . . .
> 
> 
> Not likely.  Taxes on cap gains are not owed unless
> you cash in, so you needn't cash in to pay taxes on
> gains that are not yet taxable.
> 
> I'm no tax-planning bandit -- that's a whole career
> in itself -- but far as I know the only relevant day
> for tax avoidance is Jan 1, since gains realized then
> are pushed into the next tax year.
> 
> mbs
> 
> 

-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu